Private equity vs hedge fund

By Huw Jones LONDON (Reuters) - Britain's financial watchdog is to meet with polling companies to check if private polls for hedge funds need regulating during events like the Brexit referendum campaign. Andrew Bailey, chief executive of the Financial Conduct Authority, has asked to meet the British Polling Council (BPC) and the sector's voluntary oversight body, the Market Research Society (MRS), to see how the FCA's regulatory remit could interact with the sector. "It would also be useful for this discussion to explore what, if any, actions may be required of BPC and MRS members," Bailey said in a letter to the polling companies made available to the media. Parliament's Treasury Select Committee has expressed concerns that during the Brexit vote in 2016, polling companies provided broadcasters with surveys while at the same time selling data privately to hedge funds which could then trade on the information. Sterling, for example, fell sharply when it became clear that the referendum … [Read more...] about British finance watchdog to quiz polling firms over hedge fund clients

By Simon Jessop LONDON (Reuters) - The world's wealthiest families plan to allocate more money to private equity after the asset class helped drive an average 15.5 percent rise in the value of their investments in 2017, according to a survey. Some 311 family offices - set up to manage the wealth of one or more rich families - took part in the survey, conducted by Swiss bank UBS <UBSG.S>, whose wealth management arm manages around $2.5 trillion in assets, and Campden Wealth. The strong gains in 2017 followed an average return of 7 percent in 2016 and were driven by developed and developing market listed equities, which returned 23 percent and 38 percent, respectively, and private equity, which returned 18 percent, the survey showed. For 2018, the family offices expected their direct venture capital and private equity investments to deliver the best returns, of 13 percent, followed by private equity funds, at 11 percent, and direct real estate investments, at 8.4 percent. "Family … [Read more...] about World’s wealthiest eye more private equity after bumper 2017

By Maiya Keidan LONDON (Reuters) - A private equity fund run by Goldman Sachs Asset Management (GSAM) <GS.N> has bought a minority stake in multi-strategy hedge fund firm LMR Partners, one source familiar with the matter said on Monday. The GSAM fund bought a stake of between 10 percent and 20 percent in LMR for an undisclosed sum, the source said. A spokesman for LMR Partners, which has offices in London, Hong Kong and New York, declined to comment. A spokesman for Goldman Sachs also declined to comment. LMR Partners, which uses both computer-driven and discretionary trading styles, has $5 billion in assets under management, its website said. The GSAM fund is part of its Petershill range of funds, launched in 2007 to take stakes in alternative asset managers. While Petershill I has already closed, GSAM's Petershill II and Petershill PE funds are both still active. The Petershill funds currently has $4.5 billion of investments in alternative asset managers, with previous … [Read more...] about Goldman’s Petershill takes minority stake in hedge fund LMR

Hedge funds and private-equity firms are deepening their involvement in big-ticket personal-injury lawsuits against drug companies and medical device manufacturers. Investment firms are lending money to law firms that bring so-called mass torts and providing cash advances to plaintiffs involved in such litigation. The activity is increasing just as prosecutors and lawmakers intensify their scrutiny of the industry. Earlier this year, EJF Capital, a $6 billion hedge fund, began raising money for its third investment vehicle that will lend money to lawyers bringing mass-tort cases, according to a February email to prospective investors. The new fund aims to raise $300 million on top of the nearly $450 million the Arlington, Va., hedge fund has already lent to personal injury law firms. EJF was an early mover in the business of financing mass tort litigation. Such loans can carry annual interest rates as high as 18 percent. The field is getting crowded. Wall Street firms and other … [Read more...] about Hedge funds invest in mass tort

By Sonali Paul MELBOURNE (Reuters) – Blame it on Trump, Iran or Venezuela. Rising oil prices combined with a heavy debt load killed the world’s biggest private equity oil and gas industry deal last week. Harbour Energy left Australia empty-handed after a year of chasing gas producer Santos Ltd <STO.AX>, missing out on Santos’ stakes in three liquefied natural gas projects in Australia and Papua New Guinea as it sought to become a major LNG player. The U.S. firm, backed by EIG Global Energy Partners, was forced to bid against itself five times, including twice over one weekend, until it made a final offer of $10.8 billion, up more than 50 percent from its first approach last August. “The grievance runs deep and it’s heartfelt,” said a person in the Harbour camp. Harbour Chief Executive Linda Cook, a former senior executive at Royal Dutch Shell <RDSa.L>, was on a plane last Tuesday when she heard Santos had rejected its sixth offer, worth … [Read more...] about How the world’s biggest private equity oil and gas industry bid collapsed